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29 September, 12:31

Which of the following is NOT true about so-called mortgage-backed securities: A. Before the crisis, they were believed by many banks to be a way of reducing loan risks B. Before the crisis, they played a major role in broadening home ownership in America C. They were linkages that spread instability across many financial institutions D. Their use was strongly discouraged by the Federal government

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  1. 29 September, 12:56
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    The correct answer is letter D.

    Explanation: Mortgage-backed securities are tradeable assets backed by mortgages. They allowed banks to make more loans.
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